Executives cite falling demand and the introduction of new tonnage in the water

LONDON—Container-freight rates on the busy Asia-to-Europe trade route dropped below shipping companies’ fuel costs this week for the first time in two years, with industry executives and analysts citing a combination of falling demand and the introduction of new tonnage in the water.

Data from the Shanghai Containerized Freight Index show that the cost of shipping a container from Shanghai to Rotterdam, Netherlands, fell 15% from a week earlier to $243, which is less than the average fuel expense for Asia-to-Europe sailings...